When to Fire a Property Management Company: Signs It's Time to Move On

Owning a rental property can be a profitable investment, but it also requires careful oversight. That’s why many property owners hire a property management company to handle operations. However, not all management firms deliver the level of service needed to ensure a property's success. If you’re experiencing ongoing issues, you might be asking yourself: When should I fire my property management company?

In this guide, we’ll explore the warning signs of poor property management, the impact of keeping an ineffective company, and how to transition to a better alternative smoothly.

Signs You Should Fire Your Property Management Company

1. High Vacancy Rates and Poor Occupancy Management

One of the main responsibilities of a property management company is keeping your rental occupied with quality tenants. If you’re consistently facing high vacancy rates or prolonged periods without tenants, this could indicate inefficiency in their marketing, pricing strategy, or guest screening processes.

TruStay Advantage: Unlike traditional firms that take a passive approach, TruStay optimizes pricing and marketing strategies using real-time data, ensuring properties remain competitively priced and highly visible to potential guests.

2. Lack of Communication and Transparency

Clear and timely communication is essential in any business relationship. If your property manager is slow to respond to emails, ignores your calls, or fails to provide regular updates, it’s a red flag.

Signs of poor communication include:

• Delayed responses to maintenance requests

• Lack of monthly reports or financial statements

• Unclear explanations for fees or charges

TruStay Advantage: We provide property owners with a dedicated team member for personalized communication and an online portal that offers real-time insights into property performance, financial statements, and guest feedback.

3. Frequent Maintenance Issues or Overpriced Repairs

Maintenance is inevitable, but mismanagement of repairs can lead to unnecessary expenses and unhappy guests. If your property management company regularly overcharges for maintenance, works with unqualified contractors, or delays essential repairs, it’s time to reconsider your partnership.

What to Watch For:

• Surprise maintenance fees with no prior discussion

• Guests frequently complaining about unresolved issues

• Excessive charges for minor repairs

TruStay Advantage: We prioritize cost-effective and timely maintenance solutions, leveraging a trusted network of contractors to ensure repairs are handled efficiently and at fair market rates.

4. Lack of Financial Transparency or Hidden Fees

Your management company should provide clear and accurate financial reporting. If your statements are inconsistent, missing details, or include surprise fees, you might be dealing with mismanagement—or worse, financial misconduct.

Red flags include:

• Unexplained deductions from your rental income

• Unclear revenue and expense breakdowns

• Higher-than-expected management fees

TruStay Advantage: Our performance-based pricing ensures that we only succeed when you do. Our transparent pricing model means no hidden fees—just a straightforward partnership designed to maximize your returns.

5. Legal Compliance Issues and Risk Exposure

A reliable property management company should be well-versed in local and federal short-term rental laws, ensuring that your property remains compliant. If your management company is neglecting legal responsibilities, you could face costly fines or legal disputes.

Common Compliance Issues:

• Poorly handled guest disputes

• Violations of short-term rental regulations

• Non-compliance with local ordinances

If your management company has a history of legal trouble or exposes you to unnecessary risk, it’s time to part ways.

6. They Aren’t Meeting Your Financial Goals

Ultimately, the purpose of hiring a property management company is to make property ownership profitable and hassle-free. If your income is lower than expected or your expenses are consistently higher, your management company may not be optimizing your investment.

The Risks of Holding Onto a Bad Property Management Company

Failing to fire an ineffective property management company can lead to several costly consequences, including:

• Revenue Loss: High vacancy rates, poor pricing strategies, and unnecessary maintenance costs eat into your profits.

• Guest Turnover: Poor management leads to dissatisfied guests who may leave negative reviews or avoid returning.

• Property Devaluation: Neglected maintenance and legal issues can reduce the long-term value of your property.

If any of these issues persist despite multiple conversations with your property manager, it’s time to make a change.

How to Fire Your Property Management Company

If you’ve decided to part ways with your current property manager, here’s how to ensure a smooth transition:

1. Find a New Property Manager First – Before canceling your current contract, secure a new management company to avoid gaps in occupancy and operations.

2. Review Your Contract – Check the termination clause for required notice periods and potential penalties.

3. Document Issues – Keep records of poor performance, lack of communication, or mismanagement to justify your decision.

4. Notify in Writing – Provide written notice of termination, following the contract terms.

5. Transfer Property Information – Collect keys, access codes, and financial records to ensure a smooth transition to your new management company.

Beware: Most Property Management Companies Will Delete Your Profile

When switching management companies, be aware that many firms will delete your property’s listing, erasing all your hard-earned reviews and rankings. This can significantly impact your property's visibility and credibility.

TruStay Advantage: Unlike other companies, we operate under a co-hosting model, meaning you retain full control over your listings and reviews. Even better, we have proven strategies to quickly generate new 5-star reviews, helping you rebuild credibility and optimize your booking rates.

Switch to a Better Property Management Company

If you’re ready to work with a property management company that prioritizes your success, TruStay is the solution.

Why Property Owners Choose TruStay:

• Performance-Based Fees: Unlike traditional property managers who charge a flat 30%, we only charge 15-23%, based on performance. If we don’t meet revenue targets, you pay less.

• No Long-Term Contracts: We offer a 30-day opt-out policy with no cancellation fees—because we believe in earning your trust through results, not contracts.

• Co-Hosting Model: You retain your reviews, so your property’s reputation remains intact, even if you part ways with us.

• Owner Transparency & Communication: Our intuitive portal provides full access to financials, occupancy data, and real-time insights.

Don’t let a bad property manager hold you back. If you’re tired of mismanagement, hidden fees, and poor communication, it’s time to upgrade to a company that truly values your investment.

Schedule a Free Consultation with TruStay Today

Ready to make the switch? Contact us today for a free assessment of your property’s earning potential and discover how TruStay can maximize your returns while reducing stress.